Mark, I would be inclined to add something to measure momentum exhaustion or natural resistance like fibs or pivots to preempt those yellow bars wiggles. I know its not an answer to your question
The magic tick is a HH or LL by 1 tick off any point of interest. For instance, say there is an uptrend and a bar closes below the the uptrend line. Did a tick ever go below the low of the closing bar ? If so, that's the magic tick. It's a technique I learned from Suri, in his recent H and S example you can see how Suri waits for it. I adopt the magic tick in all of my trading. He does not call it the magic tick, that's how I call it and with good reason because it's one of the most powerful techniques in my arsenal. Thanks Suri. Anek
Good friend of mine used to be the CFO of a Fortune 100 company he is approximately in his mid 60s. He knows the financial world well but when it comes to trading his bearish bias is always with him. Even though he has improved his trading tremendously by reading AHG and applying anything I could teach him, the bias still haunts him. Point is having no bias despite financial news is very hard to achieve but Nirvana for trading. Anek
Ah yes I remember now. Yes I use the magic tick (lol didn't remember the name) but not for microscalping, I use it for AHG. Scalping for 1.5, 2 points doesn't allow you to wait for it IMO, you end up giving away half of your profit waiting for a confirmation like that, I want to be in and out fast. Hope I'm not confusing people here, that's probably why Piscuy didn't feel like posting his method here. microscalping is very demanding and I don't want to give the impression it's the easy way. Your execution has to be perfect, no second guessing, and always knowing in advance what you have to do if A happens, or B happens or C, no time to think. I'm still having a lot of difficulties reacting that fast. EDIT: I think I'm going to buy a licence for buttontrader, because managing 2 separate lots microscalping with a simple matrix like the one in TWS is a bit of a mess
Mark I just set ButtonTrader yesterday, it looks like its the way to go for scalping. Use 2 lots, 1st contract small profit( 4 ticks), 2nd bring stop up to break even or 1 - 2 ticks below B/E so its a scratch scalp if your wrong. Protect your capital, of course if your wrong right off the bat its double whammy. JD
Thanks for your input JD, that's the way I intend to use it. I've been testing the demo version lately, pretty neat software.
It's a front end software very good for scalping, you can choose a load of strategies and much much more